BILL ANALYSIS
AB 2538
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Date of Hearing: May 19, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2538 (Niello) - As Amended: April 28, 2010
Policy Committee:
InsuranceVote:12-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill addresses several modifications in the administration
of the unemployment insurance (UI) and disability insurance (DI)
benefits under the jurisdiction of the California Employment
Development Department (EDD). Specifically, this bill:
1)Authorizes EDD to serve notice to an address for a bank or
savings and loan by means of magnetic media, electronic
transmission, or other electronic technology.
2)Changes the mode of serving delinquency warrants from
certified mail to first class mail.
3)Broadens the geography of where alleged offenses of UI or DI
fraud may have occurred to include any county where such
offenses occurred, rather than only in the county of residence
or county where a business is located.
4)Repeals the requirement that the Director of EDD pay DI
benefits by checks drawn on a disability benefit payment
account.
FISCAL EFFECT
Savings of less than $100,000 (federal) to convert from
certified mail to first class mail for delinquency notices.
COMMENTS
1)Rationale . This bill makes several changes to increase
authority and modify requirements for the administration of DI
AB 2538
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and UI benefits under EDD's jurisdiction. According to the
author and EDD, certified mailing of delinquency notices costs
$3.24 compared to 44 cents for a first class mail delivery.
This bill deletes the requirement to pay DI benefits by check,
thereby enabling EDD's ongoing effort to move to electronic
payment.
2)Related Legislation . AB 2188 (Bradford), pending on the
Suspense File of this committee, establishes standards for
contractors to meet with respect to the payment of UI and DI
benefits.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081